A morning walk down Dalal Street | 11,564 is crucial for bulls, correction phase may end if Nifty closes above 11,787

The S&P BSE Sensex snapped its 3-day fall to post best daily gains since March 12, 2019, largely led by short covering ahead of expiry on Thursday. The index rallied by nearly 500 points on Wednesday which recouped some of the losses made in the last two trading sessions.

Similarly, on Nifty50, the index rallied 150 points to reclaim 11700 levels, but it is still 130 points short from its record high of 11,856 recorded just last week. 

The rally in the index was led by short covering in most of the largecap names popularly known as HRITHIK stocks. HRITHIK stands for the seven blue chips – HDFC Bank, Reliance Industries, Infosys, TCS, HDFC, ITC, and Kotak Mahindra Bank. Presently these 7 stocks account for nearly 50 percent weightage in Nifty.